States' Renewed Focus on Corporate Practice of Medicine and Its Impact on Health Care Transactions
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What is the corporate practice of medicine and why is it relevant to health‑care transactions?
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Welcome everyone to our podcast today discussing Recent developments in the corporate practice of medicine and its impact on healthcare transactions. I'm John Joseph. I am a partner at Christian and Barton in Richmond, Virginia, lead our healthcare practice group. And um Teren Stone is here with us. I will pass the baton. over to Taryn and she can introduce herself and then we will be off to the races.
Great. Thanks, John. Um, as John mentioned, my name is Taryn Stone. I'm a partner at Icemiller, uh based in our Indianapolis office. And um I also lead our healthcare group. Um with that I'm gonna start off by asking John a few questions about the corporate practice. This is loosely modeled after our um presentation um in Nashville uh from the Healthcare Transactions Conference. But there's been some developments even in the month or so since. So we're excited to talk about those today. Um, so John, can you set the stage for us and tell our listeners a little bit about the corporate practice of medicine, kind of what it is, the policy behind it, maybe an overview of the general structure when the corporate practice is involved?
Sure. And and Taryn, as you know, um from our our conference in Nashville, um This is kind of a long and winding path to where we are today. Um, it it really the corporate practice of medicine in in its um nascent state it uh we really began back when when companies were providing health care to their to their uh employees, but as you know, um things have changed quite a lot. Um It it has become um uh I would say more of a situation where professionals, healthcare professionals, physicians in particular, uh probably back in like the nineteen forties or so. uh we're concerned about uh non-professionals getting involved in healthcare treatment. And so uh through some legislation that began at that time and has progressed over the years as well as through um
some enforcement mechanisms through the boards of medicine uh and similar um state operated entities, um the corporate practice has developed. Uh and that concept is something that has been different in different states, as you know. Um my state of Virginia is quite different than let's say California or uh Texas or some other states. Um the corporate practice is quite alive and well in in many states in the country, um most states in the country, in fact. In some fashion, uh, but there are certain states where it really um is just something that's um a relic of the past. And so we'll get into that a little bit more. Um but as time has progressed, um Some of the uh aspects of restrictions on the corporate practice of med of medicine have gotten a lot more specific, which is what we're gonna talk about today.
It used to be that um states were really just focused on the fact that in order to practice medicine, you needed to have a license. And it was interpreted through, for example, states like California uh that if a corporation were in some way influencing how medical care was being provided, they were violating those states' corporate practice of medicine doctrines. We always used used to use the term corporate practice of medicine doctrines. Um So from your standpoint, uh Taryn, I know that you work in more than just Indiana. Um Do the states vary?
Yeah, as we talked about we don't have the benefit maybe of graphics with this podcast, but it as we talked about in Nashville Uh every state is unique in terms of corporate practice and they're changing every single day. So there's been even more renewed efforts, which we'll talk about later. Um, given the steward and prospect shutdowns from a hospital perspective, there's been a renewed focus on the corporate practice. But there's they general generally fall into three buckets: kind of strict enforcement, which we'll talk about, um, kind of middle ground. There's some enforcement, there's definitely a corporate practice.
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Chapters
4 chapters
1
What is the corporate practice of medicine and why is it relevant to health‑care transactions?
0:05–6:56
2
How do different states categorize and enforce corporate practice of medicine doctrines?
6:56–14:31
3
Which states have the most restrictive corporate practice laws and what recent changes have they made?
14:31–31:46
4
What can we learn from Oregon’s SB 951 case about management contracts and physician control?
31:46–39:10
Speakers
2 identifiedMore from AHLA's Speaking of Health Law
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